Love146 UK, a charity that supported asylum-seeking children, has announced its closure due to “insurmountable” gaps in its funding.
The charity said in a statement that it is being forced to file for insolvency because of the “incredibly difficult economic climate” it finds itself in.
It said that gaps in funding from commissioned services, grants and donations meant it could not continue its operations.
The charity provided support to unaccompanied asylum-seeking children, including those housed in hotels by the Home Office, and its mission was to end child trafficking through prevention education and survivor care.
Majority of income came from government grants
According to its accounts ending 31 March 2022, the charity’s total income was £600,360. This is a slight decrease of 4.5% on the year prior which sat at £627,910.
Its income almost doubled from 2020 to 2021, from £349,180 to £627,91.
Some £316,252 of this income came from 13 government contracts, which accounts for 52% of its total income for that accounting year, with most of the rest coming from fundraising.
The charity employed 10 people and had four trustees.
Love146 reported having £285,555 in reserves at the end of financial year March 2022, which is more than three months in operational costs (£171,813).
However, it noted its operational costs for the next financial year were expected to rise, so expected three months' worth of reserves would be £217,909 for the year ending March 2023.
Its latest accounts read: “The trustees have confirmed that the major sources of grant funding are committed and that the delivery of the activities can be adjusted to ensure that any remaining guidelines around Covid-19 can still be applied as necessary.
“Furthermore, the trustees are confident that costs will only be incurred to the extent that income is secured. The trustees are confident that the charity has adequate resources to continue operating for the foreseeable future and, for this reason, the trustees continue to adopt the going concern basis in preparing the accounts.”
‘Incredibly proud of everything Love146 UK has achieved’
Love146 wrote that it was proud of all it has achieved since it started operating in the UK in 2011.
The charity's statement reads: “The wellbeing and safe transition of the young people supported by Love146 UK will be our number one priority over the following days and weeks.
“We are incredibly grateful for the thousands of generous donors and partners who’ve made this work in the UK possible over the years. Your support will have a lasting impact — you have changed the lives of young people and provided them with safety and security.”
Love146, which has counterparts in the United States and Philippines, are distinct legal entities that will continue operating.
Civil Society News contacted the charity for comment but did not receive a response.
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